by Matthew Fletcher | Oct 13, 2016 | blog
Carolyn Probert candidly admits that more research and a detailed plan would have made the launch of a business in a new market so much easier.
As managing director of Australian New Energy Ltd (ANE), which aims to capitalise on the growing desire for renewable energy products, she brought a diverse business background to the Geelong-headquartered company she co-founded in 2009.
“We thought it would have been easy but we could have done a much better job of our research,” she says, drawing on her earlier experience in having run two high profile fast food franchise outlets in Geelong with her husband, as well as time spent in clothing industry marketing and real estate.
She readily admits that she now loves what she does in contrast with her earlier business career.
That love is for a business that initially started with the production of pellets for heating applications using waste wood.
ANE is seeking to become the major energy supplier from wood residues and fibre for the production of renewable energy. About two centimetres long by half a centimetre thick, the pellets made from clean timber waste are an increasingly popular heating fuel in Europe and elsewhere in the northern hemisphere. Pellet heating is slowly gaining a share of the Australian heating market with Tasmania an early adopter.
A similar production process is now used at ANE’s Moolap facility to also produce pellets for animal bedding and/or litter.
With her extensive experience now honed in a business she loves, Carolyn lists many of the things learned along the way.
Perhaps the biggest of these lessons, financially at least, is the company’s decision to commit to equipment for pellet-making from a European manufacturer. While the capital cost is many times that of the first pellet-making machine sourced from China, the initial machine was plagued with operational problems.
Carolyn says “you need to take risks and to make mistakes. And, don’t be afraid to ask questions. Importantly know your customer, your competitor and your product.
“Customer service is of paramount importance. As we get busier it is getting harder to deliver and I strive to keep it as good as I would like it to be.”
Carolyn says “while the fast food franchises were cash cows, being accountable to the franchisor we were not really our own bosses. We ended up in “waste” because we could see the potential of recycling and sustainable activities.
“We thought it would be straightforward to install and operate a plant to turn clean timber waste, which would otherwise have gone into landfill, into pellets for heating. “
Given the pellet heating market in Australia was in its infancy, ANE could see more immediate cash- flow in pellets for clean, dry horse bedding. However, this was to prove a small and somewhat seasonal market in comparison with the year-round production of bedding or litter for domestic pets.
If developing markets was initially a challenge to ANE, so too were issues like freight.
But five years on and many lessons learned says Carolyn, ANE’s staff of 10 looks towards the installation of a major heating pellet system and the Catmate litter product being sold through by a large retail chain.
by Matthew Fletcher | Sep 5, 2016 | blog
If there is one message to emerge from Scott Austen’s journey as an entrepreneur it is the importance of stepping out of your comfort zone. His decision to immerse himself in the life and culture of Japan gave him the confidence to learn, a capability on which he continues to depend as managing director of the Geelong-based family business, Austin Wines.
Scott elected to have a gap year in Japan after attending Geelong Grammar and its Timbertop rural campus which he found “emotionally challenging”.
Having studied Japanese at school he headed for Japan where he lived with a local family for a year. Enrolled at a high school his adopted tongue was put to use when on his first day the principal asked him to address the 1500 pupils.
“Japan gave me the confidence to learn,” Scott says.
Returning to Australia he gained a commerce degree but was still undecided on a career path when his brother asked him to partner in a clothing company. But it would be 2004 when he joined the wine business that had been the dream of his parents from the 1980s. In a bold move, they had bought 1500 acres of land, of which 90 was planted out in pinot noir. It remains today Australia’s largest planting of that grape type, reflecting a goal of “pinot noir for the people.”
From a mere 2000 case of wine and a turnover of $150,000 in its early days to production of 20,000 cases Scott was staring down a challenge of how build a production-driven business quickly, given the need to create a brand and sell increasing quantities of wine.
The multi-generational nature of the business created a further challenge to achieving that objective: the need to make changes from the way his parents ran the business.
Never having had a job interview, Scott believes entrepreneurialism is inherent and a pay packet is not necessarily a driving force. But his Japan experience and the desire to learn was well entrenched so he undertook a Government program to help build the brand and the business.
“The Geelong region has a history of growing good grapes as well as good people, so we identified the need to tell the regional story in order to build a brand and sell product.”
Emerging from that branding exercise, Austin Wines 6 Ft 6 pinot noir is the 3rd fastest growing product by value in the national market, exemplifying the accelerating momentum of the company.
Now managing director of the business, Scott advises that growth shouldn’t be too quick, nor should a company carry too much debt. These principles are complemented by the importance of surrounding oneself with good people an operational level.
He agrees with the mantra of “hire slowly, fire quickly” and to this end he advises getting to know the people you may want to hire. Do less talking than listening to them over a coffee and maybe get them to show you what they can do, rather than just talk about it.
“Don’t be afraid of having three or four interviews for potential senior staff. And, when you do hire them, make them aware of your expectations,” Scott says, admitting to being guilty of having given some staff too much rope.
The very competitive nature of the wine business raises major questions says Mr Austin.
“First, it’s a product that is grown, made and packaged once a year. There are fewer places to sell wine so being production-driven we must get onto the shelves of the major retailers and this is dictated by everything from packaging to how we deal with those companies.
“Along the way we face challenges such as do we change from old to new branding while still holding old stock?”
Participation in the Government program to help build the business laid the foundations for an ongoing move to full vertical integration. This has seen the company recently employ a wine maker on-staff, while an investment of $1.5 million is supporting the installation of an in-house bottling line and the opening of a cellar door to sell the company’s story to consumers “face to face”.
‘Adventuresome’ joins ‘contemporary’ and ‘teamwork’ in summarising Austin Wines corporate values.
“We aim to foster those values in everything we do,” Scott Austin says.
To this end he advises having a succinct vision which staff can embrace. For Austin Wines it is to be Geelong’s leading producer of cool climate wines.
Scott says believe in your product or service because you can’t sell what you don’t like and above all show leadership ‘by doing’ as a guide to your staff. Teamwork is essential, especially for business owners. Teamwork depends on respect for one another and exemplifies an organisation’s values.
The business regards the digital world, including online marketing, as more of a growth opportunity rather than a threat which harks back to the company’s decision “not to sell on price but on its story.”
by Matthew Fletcher | Jul 25, 2016 | blog
Just as some believe that a family member should not mentor a learner driver for fear of passing on bad habits, Buzz Palmer delivers similar advice to aspiring entrepreneurs-seek a mentor outside the family.
The CEO of Small Technologies Cluster and Professor of Entrepreneurship at Monash University, Dr Palmer has a track record in medical and bio technologies that may well inspire entrepreneurs to start on a similar journey to his which began on a council estate in England’s north.
As a nine year old, surrounded by little money and a lack of employment, he fell in love with a red BMW 318. With such a car in his sights, by 20 years of age he had founded a company providing security at events and venues to fund his pursuit of a medical degree.
This led to a PhD in the area of stem cell research and set him on an entrepreneurial trajectory in the field of medical technology.
Along the way he has been involved in 14 start ups as well as becoming a venture capitalist, a journey which saw him relocate to Australia in 2008 where he now heads up Small Technologies Cluster (STC), Australia’s biggest medical technology incubator which focuses on diagnostic innovation, medical devices and bionics.
More recently he has taken STC’s mantra of “innovate, accelerate and actuate” to Monash University where, in a first for Australian universities, he was appointed Professor of Entrepreneurship.
Arguably Australia’s largest university may well become a crucible for entrepreneurship as Dr Palmer aims to forge a closer dialogue between academic research and commercial outcomes.
In the lecture theatre he advises students to get a good mentor “who, while relating to you as a person will challenge your preconceptions. But ensure that person is neither a family nor an investor even though the latter may ultimately become a mentor.”
Monash alumni now represent a potentially valuable pool of mentors he says.
Test concepts and ideas with a view to getting good feedback is a further guideline.
“Attend hackathons and boot camps to help validate ideas. Hackathons are great to help filter out five or six ideas that might work. They also help the aspiring entrepreneurs to build a profile, explore themselves and to step out of their comfort zone. Cross pollination with other disciplines can be very beneficial,” Dr Palmer says.
And he also counsels entrepreneurs to develop a high level business plan that focuses on the processes which a start-up will follow.
With the objectivity of a relative newcomer to Australia, Dr Palmer observes that “Australia, while rich in research talent, gives things away for free. We should have the use of that technology first.
“We need research that benefits Australians so we need to change the culture to ensure the outcomes of research.”
Drawing on the disciplines in which he has been most active, he notes that “we fail to capitalise on our position in the world’s top five in research and health care. “
This may be the result of universities training academics but failing to see the need to encourage entrepreneurs. It may also be that Australia is at the bottom of an OECD list which shows collaboration between universities and industry.
A further reflection of the need for a cultural change is that out of a total of about 100 universities and institutes involved in medical technology, Australia has seen the emergence of a mere 14 start-ups.
“This is not good enough,” Dr Palmer says.
Asked how the Geelong region might foster entrepreneurship and start-ups Dr Palmer says find the low hanging fruit with sectors like the disability industry and advanced manufacturing.
And did he ever own the red BMW which inspired his journey? No, but some car buffs might say the three pointed star logo on his present car means his dream has been realised.
by Matthew Fletcher | Jun 28, 2016 | blog
If anyone exemplifies the new entrepreneurial culture and enthusiasm which is afoot in Geelong it is Jake Munday. The Geelong born Gen Y-er overturns what some might see as a conventional path to entrepreneurialism and success, namely the need to move to progressively bigger cities and supposedly markets or even offshore.
Twenty-six-year-old Jake did not do well at school, choosing instead to enter the workforce early. He was managing a staff of 18 in the Melbourne retail outlet of a telecoms company by age 21 when he chose to return to Geelong, the city from which he has launched five new business ventures, both online and bricks and mortar, in as many years.
He launched his first online venture, a Facebook page for dog lovers through which he aimed to sell dog-related products, primarily into a US market. The page grew quickly in terms of followers but as Jake quickly discovered, to continue to grow the business, it was essential to keep up with the changes in Google’s search algorithms.
He soon sold this business and as a keen golfer, drawing on his initial online expertise, he could see the potential for a locally developed golf training aid to be sold online, despite its developer thinking otherwise. Seizing the opportunity and eyeing the potentially lucrative US golfing market Jake purchased the product. Another business, serving both the Australian and US markets is Pearly Whites, Jake’s online business for in-home teeth whitening kits.
Next, deciding that he wanted to re-connect with customers face to face, he decided to step away from Google, a screen and keyboard, purchasing a hand car washing franchise located in a Geelong shopping centre. Liking to learn from experience he says he got actively involved in the car wash business.
It could be said that the sum of these experiences laid the foundations for his latest venture, Social Fuel and Social Fuel US, businesses which help other organisations navigate the social media space.
The experiences have certainly enabled Jake to compile a list of guidelines for aspiring entrepreneurs, the first of which is to find the right people to partner with.
“Some partners do not pull their weight and money has a habit of changing the dynamics of a business relationship,” he says.
“So, to avoid the involvement of lawyers charging substantial hourly fees, I recommend a partnership agreement at the outset.”
Despite the cost of sorting out a less than successful partnership he says it has nevertheless been a great learning curve
For an entrepreneur operating in the online space Jake recommends trademarking any business to reduce the possibility of jealous competitors poaching a concept, a situation he confronted with the Pearly Whites business.
“Intellectual property is very important so get protection for your IP as soon as possible. Even a non-disclosure agreement (NDA) affords some protection when floating an idea for a new business to external parties,” he says.
He also recommends that entrepreneurs surround themselves with good advisors such as bankers, accountants and mentors so the business owner can focus positively on the business. Asked what qualities he looks for in a mentor he says essentially it should be a like-minded individual with whom you can connect
And how should young people get started on the entrepreneurial journey? He suggests maybe a video to outline the concept for the business, crowd funding or finding someone with money who will back an innovative idea
As a Gen Y entrepreneur he has enjoyed the support and backing of older people, something he attributes to the fact that they are attracted to the energy a young person demonstrates.
On the issue to putting time into a business he says “ whatever you do, don’t procrastinate. If you can do it today, do so.”
He also acknowledges the advantage of his youth, combined with being single with no family, as enabling him up to work whenever he likes, even if it means the odd hours required to run an online business across different time zones.
In his entrepreneurial journey so far Jake has not looked for Government support although he is aware that such support may be available if he exports to the US.
“We are currently developing an app for which some government funding would be good. I would love it if the government provided more support to innovators,” he says.
As regards the day to day running of his businesses he encourages people to automate for efficiency, citing the example of a web site which enables business to automate the process of posting to social media. This he says removes the time required to do it manually.
Looking forward to the future of the city of Geelong he would like to see many more start-ups and along the way wants to hear and see more about their experiences because “socialising and talking leads to new ideas,” he says.
by Matthew Fletcher | Jun 28, 2016 | blog
Ask most people and they will say the possibility of exposure to losses, hazards or failures is a characteristic often associated with small, start-up enterprises, not those who have built a global presence.
Julie Christy dispels that perception. As group executive, product and business innovation, for Cotton On Group, she told Entrepreneurs Geelong’s most recent breakfast seminar that risk in business does not disappear with size. If anything it can seem larger. But the trick is to learn from hazards or failures.
Ms Christy is one of 20,000 people who work for Australia’s largest fashion group which in 25 years has established a network of 1400 stores in 18 countries. When she joined Geelong-headquartered Cotton On in 2003 it had just one brand and 34 stores in Australia. Since then she has played a critical role in the expansion of the business, spearheading the launch of Cotton On BODY, Rubi and Typo, three of the eight brands for which the Group is known.
Presenting an intrapreneur’s perspective to Entrepreneurs Geelong, the former Gordon Institute fashion designer told the audience of more than 70 people she had to consult a dictionary to determine what an intrapreneur was.
Behind that label her expertise in product, product differentiation, brand identity and production management is integral to her role.
Cotton On’s website says “ she uses her intimate knowledge of each brand’s DNA to support brand teams in delivering products that are not only true to the spirit of their brand and the Cotton On Group ethos, but also progressive and exciting for their customer.”
Drawing on an extensive career she outlines some of the lessons she had learned both in and about her “intrapreneurial role” at Cotton On.
Arguably the most important of these lessons is “if the organisation scales up, the intrapreneur needs to recognise their own skills, instead of trying to do everything.”
She says in the drive to become a global brand one of the big challenges is the expectation that everyone on a team can keep up. An initial lack of success with a Cotton On brand in one country had Ms Christy believe this was the result of not having developed her people. Relaunched in a different way, the brand is now off and running.
“If you learn from such an example, then it is not a failure,” she said.
Ms Christy dispels the myth of risk only being associated with small enterprises, citing an adage that entrepreneurs in any organisation might consider: to go fast, go alone, to go far, go together.
But, at a personal level she cautions “I can still feel isolated because I network, rather than have a team (around me).”
Among the challenges the intrapreneur faces in larger organisations is the need to remain nimble while potentially losing that agility as a consequence of having to manage stakeholder engagement.
“This can lead to risk aversion,” she said.
She also notes the personal challenges stemming from having to ensure each brand is running well. Initially, to build each brand, Cotton On ran its business by function.
“This proved very stressful until the introduction of general managers for each brand,” Ms Christy said.
She shares the belief of Virgin’s Richard Branston that staff come before customers in developing successful businesses. So, while the sign on her door reads “The Department of New Ideas” it’s not slick labelling but rather aimed at having Cotton On staff come forward with ideas that can be explored.
“Creative leadership fosters innovation. I am keen to grow our staff because they are the key to corporate success,” she said.
Asked if she identified any shortcomings in her own career development, one word might sum up Ms Christy’s response. Communication.
“It is essential to communicate well to understand the needs of customers. I wish I had been more articulate.”
As someone born and raised in Geelong, Ms Christy is a vocal advocate for the city being seen as an environment for creative thinking.
“People forget that the ute, the Hills Hoist and the refrigerator are among the innovations which were born in Geelong. Geelong needs to become known as a start-up city,” she said.
by Matthew Fletcher | May 5, 2016 | blog, Uncategorized
To support his statement that ideas of themselves are worthless Henrik Scheel says there were social media sites before Facebook and search engines before Google.
“So, becoming a successful entrepreneur is all about the execution of the ideas,” the Silicon Valley based Dane told a standing room only audience at Geelong Entrepreneurs fifth breakfast seminar recently.
“To successfully execute ideas, aspiring entrepreneurs should not only share them but do so by opening up their networks of contacts as Silicon Valley demonstrates so readily.”
If this advice for entrepreneurs in the Geelong region is generic, it is underpinned by links between industry and the education sector which explain Mr Scheel’s second visit to the region in less than 12 months.
As a lecturer for SPARK@Deakin, a program run by Deakin University he is involved in an experiential program designed to give students, staff and alumni the opportunity to see, experience and relate to the early stages of the entrepreneurial path from a commercial perspective.
Drawing on his own background as an entrepreneur Mr Scheel articulates his thoughts on entrepreneurialism with a clarity and directness for which Scandinavians are known and which sees him in demand in many countries.
Largest of the challenges faced by entrepreneurs he says is the temptation to fall in love with the product or service they create, rather than the problem they are trying to solve.
Allied to this challenge is the risk assessment in which entrepreneurs should ask two questions. Market risk poses the question, should we build this to solve a real problem. The product risk asks can we build it.
This can lead says Mr Scheel to the need to overcome conventional wisdom about when to launch a new product.
“If you’re not embarrassed by the initial customer feedback about your new idea then it is arguable that you have launched it too late into the market. In other words, feedback helps refine that idea in line with the problems that the market would like to see solved.”
A second challenge says Mr Scheel is to find people you can trust. Surround yourself with people who share your dreams and have complementary skills.
Moving to Silicon Valley he found himself in a culture that exudes self-confidence and one that is characterised by cooperation, not by a “what’s in it for me mentality”.
“The US encourages people to be top performers, to open up their networks of contacts to those they meet. An inclusive mentality is a pre-requisite to successful entrepreneurialism.”
“Problems, solutions, markets and the business are the four elements of any pitch and of these, problems are by far the most important to get across to an investor. Also bear in mind that big investors invest in teams, not in ideas,” Mr Scheel says.
So to pitch an idea successfully, entrepreneurs need to understand the background of a potential investor. Is that person a large scale venture capitalist or an angel investor or social entrepreneur who might see the benefits to communities of a particular new product or service?
Another entrepreneurial challenge is facing up to failure. Mr Scheel cites Finland’s national day of failure which he says exemplifies “that if we are to move forward we must be encouraged to examine where we have screwed up.”
In 2010, having founded two companies in Denmark before specialising in strategy development and innovation management at a global clean energy provider, Henrik Scheel moved to Silicon Valley where he founded Startup Experience, Inc. – a company that delivers interactive workshops aimed at solving social problems through entrepreneurship.
Explaining the interest of high school students and university undergraduates in the Startup Experience courses, he cites a figure that 90 per cent of jobs today are with companies that are less than five years old further highlighting the importance of an entrepreneurial culture in post-industrial Geelong.
“In a world where the job description for which someone has trained no longer exists, how to learn new skills is critical. Being an entrepreneur is no longer a choice,” he says.
